Accounting Plus (Midterm Exam-Wednesday) Flashcards
1
Q
Accounting is the ___ of business.
A
language
2
Q
IFRS
A
International Financial Reporting Standards
3
Q
A business organization composed of at least 5 but not more than 15 ownerships.
A
Corporation
4
Q
Corporation is a ___ ___ composed of ___ ___ ___ but ___ ___ ___ ownerships.
A
Corporation is a business organization composed of at least 5 but not more than 15 ownerships.
5
Q
AAA
A
American Accounting Association
6
Q
It ensures that financial transactions are recorded accurately and in accordance with GAAP of IFRS.
A
Compliance and Governance
7
Q
Compliance and Governance ensures that ___ ___ are ___ ___and in accordance with ___ of ___.
A
Compliance and Governance ensures that financial transactions are recorded accurately and in accordance with GAAP of IFRS.
8
Q
ASC developed into ___.
A
FRSC (Financial Reporting Standards Council)
9
Q
It aims to promote business and commerce across the country by simplifying the process for registering and administering a corporation in the Philippines.
A
Article 1767 of the Civil Code
10
Q
Article ___ of the Civil Code aims to ___ ___ and ___ across the country by ___ ___ ___ for ___ and ___ a ___ in the Philippines.
A
Article 1767 of the Civil Code aims to promote business and commerce across the country by simplifying the process for registering and administering a corporation in the Philippines.
11
Q
Basic Principles (7)
A
Historical Cost Principle
Objectivity Principle
Revenue Recognition Principle
Expense Recognition Principle
Adequate Disclosure
Consistency Principle
Materiality Principle
12
Q
IAS
A
International Accounting Standards
13
Q
OPC
A
One Person Corporation
14
Q
SEC
A
Securities and Exchange Commission
15
Q
It helps businesses allocate resources effectively, set financial goals, and monitor performance throughout the year.
A
Budgeting and Planning
16
Q
Budgeting and Planning helps businesses ___ ___ ___, ___ ___ ___, and ___ ___ throughout the ___.
A
Budgeting and Planning helps businesses allocate resources effectively, set financial goals, and monitor performance throughout the year.
17
Q
ASC
A
Accounting Standards Council
18
Q
A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
A
Corporation
19
Q
Corporation is a ___ or ___ ___ ___ authorized to act as a ___ ___ (legally a person) and recognized as such in law.
A
Corporation is a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
20
Q
BIR
A
Bureau of internal Revinue
21
Q
Profit is equivalent to ___.
A
Net
22
Q
It promotes transparency and accountability within the organization.
A
Compliance and Governance
23
Q
Compliance and Governance promotes ___ and ___ within the ___.
A
Compliance and Governance promotes transparency and accountability within the organization.
24
Q
A business organization that acquires finished goods and resells the same to consumers.
A
Merchandising
25
Merchandising is a ___ ___ that ___ ___ ___ and ___ the same to ___.
Merchandising is a business organization that acquires finished goods and resells the same to consumers.
26
A business organization owned by two or more people.
Partnership
27
Partnership is a ___ ___ owned by ___ ___ ___ people.
Partnership is a business organization owned by two or more people.
28
It is a principle where you record transaction on actual cost.
Historical Cost Principle
29
Historical Cost Principle is a principle where you ___ ___ on ___ ___.
Historical Cost Principle is a principle where you record transaction on actual cost.
30
Roles of Accounting (6)
Financial Reporting
Budgeting and Planning
Decision Making
Tax Compliance and Planning
Financial Analysis
Compliance and Governance
31
Accounting is an art of recording, classifying, and summarizing in a significant manner and in terms of money transactions and events which are in part at least of a financial character and interpreting the results thereof. - ___
AICPA
32
AICPA - Accounting is an ___ of ___, ___, and ___ in a ___ ___ and in terms of ___ ___ and ___ which are in part at least of a ___ ___ and ___ the ___ thereof.
AICPA - Accounting is an art of recording, classifying, and summarizing in a significant manner and in terms of money transactions and events which are in part at least of a financial character and interpreting the results thereof.
33
Revenue is equivalent to ___.
Gross
34
AAA - Accounting is the ___ of ___, ___, and ___ ___ ___ to permit ___ ___ and ___ by ___ of the information.
AAA - Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgement and decision by users of the information.
35
Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgement and decision by users of the information.
AAA
36
Types of Business Organization Based on Activities
Service
Merchandising
Manufacturing
37
A business organization that provides work performed through the expertise by individual or team for the advantage of its customers or clients.
Service
38
Service is a ___ ___ that provides ___ performed through the ___ by ___ or ___ for the advantage of its ___ or ___.
Service is a business organization that provides work performed through the expertise by individual or team for the advantage of its customers or clients.
39
AICPA developed into ___.
PICPA (Philippine Institute of Certified Public Accountants)
40
A business organization owned and controlled by one person.
Sole Proprietorship
41
Sole Proprietorship is a ___ ___ owned and ___ by ___ person.
Sole Proprietorship is a business organization owned and controlled by one person.
42
Service is equivalent to ___ in financial statements.
Service Revenue/Service Income
43
PICPA started at ___.
1929
44
It ensures compliance with tax laws and regulations, preparing, and filing tax returns accurately and on time, minimizing tax liabilities through strategic tax planning.
Tax Compliance and Planning
45
Tax Compliance and Planning ensures ___ with ___ ___ and ___, ___, and ___ ___ ___and on ___, ___ ___ ___ through ___ ___ ___.
Tax Compliance and Planning ensures compliance with tax laws and regulations, preparing, and filing tax returns accurately and on time, minimizing tax liabilities through strategic tax planning.
46
Aspect of Business 01
It is systematically established.
47
IAP started at ___.
1923
48
Aspect of Business 04
It satisfies the customers.
49
Decision Making assesses ___, evaluate ___ ___ ___, and make ___ ___ about ___, ___, ___, and ___.
Decision Making assesses profitability, evaluate performance against goals, and make strategic decisions about pricing, production, investment, and expansion.
49
It assesses profitability, evaluate performance against goals, and make strategic decisions about pricing, production, investment, and expansion.
Decision Making
50
Forms of Business Organization (3)
Sole Proprietorship
Partnership
Corporation
51
Why is accounting the language of business? (3)
It has its own set of terminologies.
It is a means of communicating information about a business.
It is like any other language; it is difficult to understand unless you have studied it.
52
Merchandising and Manufacturing is equivalent to ___ in financial statements.
Sales
53
IASC
International Accounting Standards Council
54
A corporation is an ___ ___.
Artificial being
55
Corporation is composed of ___ ___ ___.
Board of Directors
56
When did the first accounting profession started in the Philippines?
March 17, 1923
57
PAS
Philippine Accounting Standards
58
Revenue is recognized when the earning process is complete regardless of when cash is received.
Revenue Recognition Principle
59
Revenue Recognition Principle is that ___ is ___ when the ___ ___ is ___ regardless of when ___ is ___.
Revenue Recognition Principle is that revenue is recognized when the earning process is complete regardless of when cash is received.
60
Accounting is a service activity. The accounting function to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. - ___
ASC
61
ASC - Accounting is a ___ ___. The ___ ___ to provide ___ ___, primarily ___ ___ ___, about ___ ___, that is intended to be useful in making ___ ___.
ASC - Accounting is a service activity. The accounting function to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision.
62
It helps management make informed decisions and improve overall financial performance.
Financial Analysis
63
Financial Analysis helps ___ make ___ ___ and improve overall ___ ___.
Financial Analysis helps management make informed decisions and improve overall financial performance.
64
The seller is willing to sell, the buyer is willing t buy.
Market Value
65
It prepares financial statements that provides a clear picture of the company's financial performance and position.
Financial Reporting
66
Financial Reporting prepares ___ ___ that provides a ___ ___ of the company's ___ ___ and ___.
Financial Reporting prepares financial statements that provides a clear picture of the company's financial performance and position.
67
Aspect of Business 03
It earns profit.
68
GAAP
Generally Accepted Accounting Principles
69
It is a measure of value used in accounting in which an asset on the balance sheet is recorded at its original cost.
Historical Cost Principle
70
Historical Cost Principle is a ___ ___ ___ used in accounting in which an ___ ___ ___ ___ ___ is recorded at its ___ ___.
Historical Cost Principle is a measure of value used in accounting in which an asset on the balance sheet is recorded at its original cost.
71
IFRS
International Financial Reporting Standards
72
A systematized effort of persons to create something and trade the same to earn a profit which in the end will satisfy the community or the society.
Business
73
Business is a ___ ___ of ___ to ___ ___ and ___ ___ ___ ___ ___ ___ ___ which in the end will ___ the ___ or the ___.
Business is a systematized effort of persons to create something and trade the same to earn a profit which in the end will satisfy the community or the society.
74
Underlying Assumption (1)
Going Concern Assumption
75
Republic Act No. 11232 is signed by ___ ___, in ___ ___ ___.
Republic Act No. 11232 is signed by President Duterte, in February 20, 2019.
76
An entity that converts raw materials into finished goods and sells them to consumers.
Manufacturing
77
Manufacturing is an ___ that ___ ___ ___ into ___ ___ and ___ them to ___.
Manufacturing is an entity that converts raw materials into finished goods and sells them to consumers.
78
PICPA
Philippine Institute of Certified Public Accountants
79
Theories in Accounting (3)
Basic Principles
Underlying Assumption
Fundamental Concepts
80
Who is the first Filipino CPA?
Don Vicente Fabella
81
Fundamental Concepts (3)
Accounting Entity Concepts
Periodicity Concept
Stable Monetary Unit Concept
82
Aspect of Business 02
It provides goods or services.
83
It is the concept that the financial statements of an organization be based on solid evidence.
Objectivity Principle
84
Objectivity Principle is the ___ that the ___ ___ of an ___ be based on ___ ___.
Objectivity Principle is the concept that the financial statements of an organization be based on solid evidence.
85
PFRS
Philippine Financial Reporting Standards
86
AICPA
American Institute of Certified Public Accountants
87
Users of Accounting Information (2)
Primary Users
Other Users
88
Primary Users (2)
Investor/Owners
Lenders/Creditors
89
Other Users (4)
Employees
Government
Public
Management
90
ROI
Return of Investment
91
Investors need accounting information to know the ___ ___ in ___ and ___.
Investors need accounting information to know the risk inherent in investing and returns.
92
Investors need accounting information to know the ___ ___ ___.
Investors need accounting information to know the feasibility of investing.
93
Investors need accounting information to ___ it before providing ___ ___ to ___.
Investors need accounting information to analyze it before providing financial resources to company.
94
Investors need accounting information on ___, ___, ___, ___ and ___ of the company.
Investors need accounting information on sales, profit, return of investment, stability and continuity of the company.
95
Lenders or Creditors need accounting information to know the ___ of a ___.
Lenders or Creditors need accounting information to know the credit worthiness of a business.
96
Lenders or Creditors need accounting information such as the ___ ___ ___ of the ___.
Lenders or Creditors need accounting information such as the ability to pay of the company.
97
Lenders or Creditors need consists of ___, ___ ___ ___, and ___.
Lenders or Creditors need consists of suppliers, lenders of finance, and banks.
98
___ ___ and ___ are the basis of financial health.
Credit terms and standards are the basis of financial health.
99
Employees need accounting information to know the ___ ___ of the ___, ___ of ___ and ___ to determine their ___ ___, ___ of ___ ___, ___ ___ and ___ ___.
Employees need accounting information to know the financial health of the business, amount of sales and profitability to determine their job security, possibility of future renumeration, retirement benefits and employment opportunities.
100
Employees need accounting information to know the ___ ___ of the ___ and ___ of the company.
Employees need accounting information to know the financial health of the stability and profitability of the company.
101
Government needs accounting information to ___ ___ and ___ ___ due to them.
Government needs accounting information to collect taxes and other fees due to them.
102
Public need accounting information as ___ ___ ___.
Public need accounting information as sources of information.
103
Management need accounting information to make ___ ___ ___, assess the ___ ___, and to meet ___ ___.
Management need accounting information to make projections and divisions, assess the expected ROI, and to meet legal obligations.
104
Branches of Accounting (7)
Financial Accounting
Management Accounting
Cost Accounting
Tax Accounting
Fund Accounting
Government Accounting
Forensic Accounting
105
Services are equivalent to ___ ___ ___/___ ___ ___ in the financial statements.
Unearned Service Income/ Unearned Service Revenue
106
Merchandising and Manufacturing are equivalent to ___ ___ in the financial statements.
Unearned Sales
107
Expense Recognition Principle is that the ___ is ___ when it is ___ regardless of when ___ ___ ___.
Expense Recognition Principle is that the expense is recognized when it is incurred regardless of when cash is paid.
108
Expense is recognized when it is incurred regardless of when cash is paid.
Expense Recognition Principle
109
The combination of the expense and revenue recognition principle is called ___ ___.
Matching Principle
110
It is ____ when goods are used up and services are received.
incurred
111
It is incurred when ___ ___ ___ ___ and ___ ___ ___.
It is incurred when goods are used up and services are received.
112
Adequate Disclosure is the ___ ___ that could help ___ ___ ___ should be ___.
Adequate Disclosure is the additional information that could help economic decision making should be presented.
113
It is the additional information that could help economic decision making should be presented.
Adequate Disclosure
114
It demands full disclosure of all material matters which can affect the financial statements and are of the interest of users of accounting information.
Adequate Disclosure
114
Adequate Disclosure demands ___ ___ of all ___ ___ which can affect the ___ ___ and are of the interest of ___ ___ ___ ___.
Adequate Disclosure demands full disclosure of all material matters which can affect the financial statements and are of the interest of users of accounting information.
115
Adequate Disclosure requires the ___ of ___ ___ in ___ ___ which can be more ___ and ___ ___ to its ___.
Adequate Disclosure requires the disclosure of appropriate changes in financial statements which can be more useful and not misleading to its users.
116
It requires the disclosure of appropriate changes in financial statements which can be more useful and not misleading to its users.
Adequate Disclosure
117
Adequate Disclosure ___ ___ ___ any ___ that could help the decisions of users.
Adequate Disclosure should not hide any information that could help the decisions of users.
118
This should not hide any information that could help the decisions of users.
Adequate Disclosure
119
Adequate Disclosure are the ___ ___ ___.
Adequate Disclosure are the qualitative extra information.
120
These are the qualitative extra information.
Adequate Disclosure
121
Consistency Principle is that once you adopt an ___ ___ or ___, continue to follow it ___ in ___ ___ ___.
Consistency Principle is that once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods.
122
Once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods.
Consistency Principle
123
Consistency Principle should only change an ___ ___ or ___ if the ___ ___ in some way improves ___ ___ ___.
Consistency Principle should only change an accounting principle or method if the new version in some way improves reported financial results.
124
It should only change an accounting principle or method if the new version in some way improves reported financial results.
Consistency Principle
125
SLM
Straight Line Method
126
Materiality Principle states that financial information is ___ to the ___ ___ if it would ___ the ___ or ___ of a ___ ___.
Materiality Principle states that financial information is material to the financial statements if it would change the opinion or view of a reasonable person.
127
States that financial information is material to the financial statements if it would change the opinion or view of a reasonable person.
Materiality Principle
128
Materiality Principle states that what is ___ to you might be ___ to others.
Materiality Principle states that what is material to you might be immaterial to others.
129
States that what is material to you might be immaterial to others.
Materiality Principle
130
Materiality Principle is the need to know the nature ___ and ___ of the ___.
Materiality Principle is the need to know the nature and relation of the transactions.
131
It is the need to know the nature and relation of the transactions.
Materiality Principle
132
Going Concern Assumption is an accountancy term for a ___ that has the ___ needed to continue ___ ___ until it provides ___ to the ___.
Going Concern Assumption is an accountancy term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary.
133
An accountancy term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary.
Going Concern Assumption
134
Accounting Entity Concept is that a ___ or an ___ and its ___ are treated as ___ ___ ___ ___.
Accounting Entity Concept is that a business or an organization and its owners are treated as two separately identifiable parties.
135
A business or an organization and its owners are treated as two separately identifiable parties.
Accounting Entity Concept
136
Accounting Entity Concept is that the ___ and the ___ are ___ and ___ ___.
Accounting Entity Concept is that the business and the owner are separate and distinct entity.
137
The business and the owner are separate and distinct entity.
Accounting Entity Concept
138
___ and ___ ___ is the accounting period of ___ year.
Calendar and Fiscal Year is the accounting period of one year.
139
Periodicity Concept means that ___ will assume that a company's ___ and ___ activities can be divided up and reported in ___, ___ and ___ financial statements.
Periodicity Concept means that accountants will assume that a company's complex and ongoing activities can be divided up and reported in annual, quarterly and monthly financial statements.
140
Accountants will assume that a company's complex and ongoing activities can be divided up and reported in annual, quarterly and monthly financial statements.
Periodicity Concept
141
Stable Monetary Unit Concept assumes that the ___ of the ___ is ___ ___ and ___ the ___ ___ ___ in the ___ ___.
Stable Monetary Unit Concept assumes that the value of the peso is stable overtime and ignores the effect of inflation in the accounting records.
142
143
History of Accounting (12)
2500 B.C.
1000 B.C.
500 B.C.
432 B.C.
1200-1493
1494
1500-1700
1701-1900
1920-1940
1936
1973
1941 to present
144
Historical accounting records have been found in ancient civilizations like Egyptians, Romans, Greek Empires as well as Ancient Arabia. - HOA
2000 B.C.
145
The Phoenicians created an alphabet in clay tablets. - HOA
1000 B.C.
146
The first invention of the first bead and wire abacus, with Egypt and China. - HOA
500 B.C.
147
The auditing profession was first established. - HOA
432 B.C.
148
The first requirement for business to keep accounting records spread across many of the Italian Republics in the 13th Century. - HOA
1200-1493
149
Luca Pacioli wrote Summa de Arithmetica. - HOA
1494
150
Double-Entry records had small and large innovations. Financial and Management accounting had been necessity to report to management and investors respectively. - HOA
1500-1700
151
During the Industrial Revolution, accounting really took off to gain financing and maintain efficiency through capitalism. - HOA
1701-1900
152
GAAP was developed by AICPA. - HOA
1936
153
Financial Accounting Standards Board was established. - HOA
1973
154
FASB
Financial Accounting Standards Board
155
___ ___ promotes, develops and supports accountants worldwide.
Accounting Profession
156
Its role is crucial in protecting the quality and integrity of accountants who are core to the rigorous application of the Standards.
Accounting Profession
157
Accounting Profession ___, ___ and ___ ___ worldwide.
Accounting Profession promotes, develops and supports accountants worldwide.
158
Accounting Profession's role is crucial in ___ the ___ and ___ of ___ who are core to the rigorous ___ of the ___.
Accounting Profession's role is crucial in protecting the quality and integrity of accountants who are core to the rigorous application of the Standards.
159
Roles of Accounting Profession (7)
Financial Reporting
Financial Analysis
Auditing
Tax Advisory
Management Consulting
Risk Management
Corporate Governance
160
Helps businesses provides accurate financial information for decision-making.
Financial Reporting
161
Helps society ensure transparency and accountability, fostering trust.
Financial Reporting
162
Helps businesses assist in evaluating performance and identifying trends.
Financial Analysis
163
Helps society in efficient allocation of resources and economic stability.
Financial Analysis
164
Helps businesses verify financial records to ensure accuracy and reliability.
Auditing
165
Helps society safeguard public interest by validating financial information.
Auditing
166
Helps businesses optimize tax strategies and compliance with tax laws.
Tax Advisory
167
Helps society support government revenue generation and fairness in taxation.
Tax Advisory
168
Tax Advisory helps society support ___ ___ ___ and fairness in ___.
Tax Advisory helps society support government revenue generation and fairness in taxation.
169
Tax Advisory helps businesses optimize ___ ___ and compliance with ___ ___.
Tax Advisory helps businesses optimize tax strategies and compliance with tax laws.
170
Auditing helps society ___ ___ ___ by ___ financial information.
Auditing helps society safeguard public interest by validating financial information.
171
Auditing helps businesses ___ financial records to ensure ___ and ___.
Auditing helps businesses verify financial records to ensure accuracy and reliability.
172
Financial Analysis helps society in ___ ___ of ___ and ___ ___.
Financial Analysis helps society in efficient allocation of resources and economic stability.
173
Financial Analysis helps businesses assist in ___ ___ and ___ ___.
Financial Analysis helps businesses assist in evaluating performance and identifying trends.
174
Financial Reporting helps society ensure ___ and ___, ___ ___.
Financial Reporting helps society ensure transparency and accountability, fostering trust.
175
Financial Reporting helps businesses provides ___ ___ ___ for ___ ___.
Financial Reporting helps businesses provides accurate financial information for decision-making.
176
Helps businesses by offering insights for strategic planning and operational efficiency.
Management Consulting
177
Management Consulting helps businesses by ___ ___ for ___ ___ and ___ ___.
Management Consulting helps businesses by offering insights for strategic planning and operational efficiency.
178
Helps society promotes organizational growth and effectiveness.
Management Consulting
179
Management Consulting helps society promotes ___ ___ and ___.
Management Consulting helps society promotes organizational growth and effectiveness.
180
Helps businesses identify and manage financial risks.
Risk Management
181
Risk Management helps businesses ___ and ___ ___ ___.
Risk Management helps businesses identify and manage financial risks.
182
Helps society mitigate risks for investors and stakeholders.
Risk Management
183
Risk Management helps society ___ ___ for ___ and stakeholders.
Risk Management helps society mitigate risks for investors and stakeholders.
184
Helps businesses establish frameworks for ethical conduct and accountability.
Corporate Governance
185
Corporate Governance helps businesses ___ ___ for ___ ___ and ___.
Corporate Governance helps businesses establish frameworks for ethical conduct and accountability.
186
Helps society uphold ethical standards and corporate responsibility.
Corporate Governance
187
Corporate Governance helps society uphold ___ ___ and ___ ___.
Corporate Governance helps society uphold ethical standards and corporate responsibility.
188
Accountancy Profession has grown due to the ___ ___, ___, and ___ of ___ and the ___ ___ in the ___ ___.
Accountancy Profession has grown due to the increased complexity, size, and number of businesses and the frequent changes in the tax laws.
189
Accountancy is considered a profession because it determines its ___ ___ of ___ and ___.
Accountancy is considered a profession because it determines its own standards of education and training.
190
Accountancy is considered a profession because it is often ___ ___ by some form of ___.
Accountancy is considered a profession because it is often legally recognized by some form of licensure.
191
Accountancy is considered a profession because the ___ and ___ ___ are ___ by ___ of the ___.
Accountancy is considered a profession because the licensing and admission boards are manned by members of the profession.
192
Accountancy is considered a profession because most ___ ___ with the ___ is ___ by that ___.
Accountancy is considered a profession because most legislation concerned with the profession is shaped by that profession
193
Accountancy is considered a profession because the ___ is ___ ___ of lay ___ and ___.
Accountancy is considered a profession because the practitioner is relatively free of lay evaluation and control.
194
The Philippine Accountancy Act of 2004
(Republic Act No. 9298)
An act regulating the practice of accountancy in the Philippines.
195
The Philippine Accountancy Act of 2004
was published in two circulating newspapers nationwide and came into law on ___ ___.
July 2004
196
An act regulating the practice of accountancy in the Philippines.
The Philippine Accountancy Act of 2004
(Republic Act No. 9298)
197
The Philippine Accountancy Act of 2004
(Republic Act No. 9298) was enacted into law in ___ ___ ___.
May 13, 2004
198
Key provisions of RA 9298 (5)
Objectives
PRBOA composition & qualification
Qualifications of applicants
Scope of Examinations
Rating in the CPALE
Continuing Professional Development (CPD)
199
The Philippine Accountancy Act of 2004
(Republic Act No. 9298) was signed by ___ ___ ___.
Gloria Macapagal Arroyo
200
Revised Accountancy Law (Presidential Decree No. 692) was enacted into law in ___ ___ ___.
May 05, 1975
201
Revised Accountancy Law (Presidential Decree No. 692) was signed by ___ ___ ___.
President Ferdinand Marcos
202
CPD
Continuing Professional Development
203
PRBOA
Professional Regulatory Board of Accountancy
204
BOA
Board of Accountancy
205
Article I., Section 3:
Objectives
206
Article II., Section 5:
The Professional Regulatory Board of Accountancy and its Composition
207
Article II., Section 6:
Qualifications of a members of the Professional Regulatory Board
208
Article III., Section 14:
Qualifications of applicants for examinations
209
Article III., Section 15:
Scope of Examination (as revised)
210
Article III., Section 16:
Rating in the Licensure Examination
211
Article III., Section 18:
Failing Candidates to Take Refresher Course
212
Article I., Section 4:
Areas of Accounting Practice
213
Republic Act No. 10912
Professional Development (CPD) units
214
CPD Act of 2016
Republic Act No. 10912
215
Republic Act No. 10912
Enacted to promote and upgrade the practice of the professions in the country.
216
CPD Act of 2016 lapsed into Law ___ ___, ___.
July 21, 2016
217
CPD Act of 2016 took effect on ___ ___, ___.
August 16, 2016
218
CPAs are required to earn a total of ___ ___ ___.
120 CPD Units
219
Accounting Plus Professor
Timoleon S. Lianza
220
221
The value of an amount of learning achieved from formal, informal or non-formal learning including professional work experience wherein credit units can be accumulated to predetermined levels for the award of a qualification.
CPD Credit Units
221
Article I., Section 3: Objectives
-The standardization and regulation of accounting education.
-The examination of registration of certified public accountants.
-The supervision, control, and regulation of the practice of accountancy in the Philippines.
222
Article I., Section 3: Objectives
-The ___ and ___ of accounting education.
-The ___ of ___ of certified public accountants.
-The ___, ___, and ___ of the practice of accountancy in the Philippines.
Article I., Section 3: Objectives
-The standardization and regulation of accounting education.
-The examination of registration of certified public accountants.
-The supervision, control, and regulation of the practice of accountancy in the Philippines.
223
Article II., Section 5:
The Professional Regulatory Board of Accountancy and its Composition
-1 Chairman
-6 members (President of the Philippines)
-3 recommendees (Commission)
-5 nominees (National Professional Organization of Certified Public Accountant)
224
Article II., Section 5:
The Professional Regulatory Board of Accountancy and its Composition
-___ Chairman
-___ members (___ of the Philippines)
-___ recommendees (___)
-___ nominees (___ ___ ___ of ___ ___ ___)
Article II., Section 5:
The Professional Regulatory Board of Accountancy and its Composition
-1 Chairman
-6 members (President of the Philippines)
-3 recommendees (Commission)
-5 nominees (National Professional Organization of Certified Public Accountant)
225
Article II., Section 6:
Qualifications of a members of the Professional Regulatory Board
-Natural-born citizen
-Resident of the Philippines
-Certified Public Accountant (10)
-Good moral character
-Must not have any interest in any school
226
Article II., Section 6:
Qualifications of a members of the Professional Regulatory Board
-___ ___ citizen
-___ of the Philippines
-___ ___ ___ (10)
-___ ___ character
-Must not have any ___ in any ___
Article II., Section 6:
Qualifications of a members of the Professional Regulatory Board
-Natural-born citizen
-Resident of the Philippines
-Certified Public Accountant (10)
-Good moral character
-Must not have any interest in any school
227
Article III., Section 14:
Qualifications of applicants for examinations
-Filipino citizen
-Good moral character
-A BSA degree holder
-No criminal offence
228
Article III., Section 14:
Qualifications of applicants for examinations
-___ citizen
-___ ___ character
-A ___ degree holder
-No ___ ___
Article III., Section 14:
Qualifications of applicants for examinations
-Filipino citizen
-Good moral character
-A BSA degree holder
-No criminal offence
229
Article III., Section 15:
Scope of Examination (as revised) (6)
-Financial Accounting & Reporting (FAR)
-Advanced Financial Accounting & Reporting (AFAR)
-Auditing
-Management Advisory Services (MAS)
-Taxation
-Regulatory Framework for Business Transactions (RFBT)
230
Article III., Section 16:
Rating in the Licensure Examination
-Average of 75%
-No grade lower than 65% in any given subject.
-Conditional credit shall take an examination in the remaining subjects within 2 years
-Failure to obtain 75% and 65% shall be considered as failed in the entire examination
231
Article III., Section 16:
Rating in the Licensure Examination
-Average of ___
-No grade lower than ___ in any given subject.
-___ ___ shall take an ___ in the remaining subjects within ___ ___
-Failure to obtain ___ and ___ shall be considered as ___ in the entire ___
Article III., Section 16:
Rating in the Licensure Examination
-Average of 75%
-No grade lower than 65% in any given subject.
-Conditional credit shall take an examination in the remaining subjects within 2 years
-Failure to obtain 75% and 65% shall be considered as failed in the entire examination
232
Article III., Section 18:
Failing Candidates to Take Refresher Course
Any candidate who fails 2 complete CPA Board Examinations is disqualified until completion of at least 24 units of subject given in the licensure examination.
233
Article III., Section 18:
Failing Candidates to Take Refresher Course
-Any candidate who fails ___ complete ___ ___ ___ is ___ until completion of at least ___ units of subject given in the ___ ___.
Article III., Section 18:
Failing Candidates to Take Refresher Course
-Any candidate who fails in 2 complete CPA Board Examinations is disqualified until completion of at least 24 units of subject given in the licensure examination.
234
Article I., Section 4:
Areas of Accounting Practice (4)
Practice of Public Accountancy
Practice in Commerce and Industry
Practice in Education/Academe
Practice in Government
235
Conceptual Framework Levels (3)
-Objectives of Financial Reporting
-Qualitative Characteristics
-Elements of F/S
Recognition and Measurement Concepts
236
History of Conceptual Framework (5)
April 1989
July 1989
April 2001
September 2010
March 2018
237
Framework for the Preparation & Presentation of Financial Statements (Framework) was approved by the Board of IASC - HOCF
April 1989
238
Framework was published - HOCF
July 1989
239
Framework was adopted by the IASB - HOCF
April 2001
240
Conceptual Framework for Financial Reporting for 2010 approved by IASB - HOCF
September 2010
241
Conceptual Framework for Financial Reporting 2018 was published
March 2018
242
Conceptual Framework for Financial Reporting 2010 has ___ chapters.
Conceptual Framework for Financial Reporting 2010 has 4 chapters.
243
Conceptual Framework for Financial Reporting 2018 has ___ chapters.
Conceptual Framework for Financial Reporting 2018 has 8 chapters.
244
A system of ideas and objectives that lead to the creation of a consistent set of rules and standards. Specifically in accounting, the rule and standards set the nature, function and limits of financial accounting and financial statements.
Conceptual Framework
245
Purpose of Conceptual Framework for Financial Reporting
-Assist the IAS Board to develop IFRS
-Assist preparers to develop consistent accounting policies
-Assist all parties to understand and interpret the Standards
246
Standards
PAS and PFRS
247
Purpose of CFFR
-Assist the ___ ___ to develop ___
-Assist ___ to develop ___ accounting policies
-Assist all parties to ___ and ___ the Standards
Purpose of CFFR
-Assist the IAS Board to develop IFRS
-Assist preparers to develop consistent accounting policies
-Assist all parties to understand and interpret the Standards
248
Conceptual Framework is not a ___.
Conceptual Framework is not a Standard.
249
Qualitative Characteristics of Conceptual Framework for Financial Reporting (2)
Fundamental
Enhancing
250
Fundamental Qualitative Characteristics (2)
Relevance
Faithful Representation
251
Enhancing Qualitative Characteristics (4)
Verifiability
Comparability
Understandability
Timeliness
252
General Objective of F/S (3)
Economic Resources of the Reporting entity
Claims against the Entity
Changes in the Economic Resources and Claims
253
Elements directly related to the measurement of Financial Position (3)
Asset
Liability
Equity
254
Elements directly related to the measurement of Financial Performance (2)
Income
Expense
255
Relevance (3)
Predictive Value
Confirmatory Value
Materiality
256
Faithful Representation (3)
Completeness
Neutrality
Free from Error
257
It provides financial information that is useful to users in making decisions relating to providing resources to the entity.
Financial Reporting
258
Financial Reporting provides ___ ___ that is useful to users in making decisions relating to ___ ___ to the entity.
Financial Reporting provides financial information that is useful to users in making decisions relating to providing resources to the entity.
259
Users’ decisions involve decisions about:
___, ___ or holding ___or ___ ___.
Providing or settling ___ or other forms of ___.
Influencing ___ actions.
Users’ decisions involve decisions about:
Buying, selling or holding equity or debt instruments.
Providing or settling loans or other forms of credits.
Influencing management’s actions.
259
To make decisions users assess:
___ for future ___ ___ ___ to the entity.
___ ___ of the entity’s ___ ___.
To make decisions users assess:
Prospects for future net cash inflows to the entity.
Management’s stewardship of the entity’s economic resources.
260
In making assessments users need information about:
___ ___, ___ against the entity, and ___ in those resources and claims.
How effectively ___ has discharged its ___ to use the entity’s ___ ___.
In making assessments users need information about:
Economic Resources, claims against the entity, and changes in those resources and claims.
How effectively management has discharged its responsibilities to use the entity’s economic resources.
261
It is the end-product of the financial accounting process.
Financial Statements
262
It contains the records that tell the performance of the entity, resources, claims against the entity and the changes in those resources and claims.
Financial Statements
263
Financial Statements is the ___-___ of the financial accounting process.
Financial Statements is the end-product of the financial accounting process.
264
Financial Statements contains the ___ that tell the ___ of the ___, ___, ___ against the entity and the ___ in those resources and claims.
Financial Statements contains the records that tell the performance of the entity, resources, claims against the entity and the changes in those resources and claims.
265
Components of Financial Statements (5)
Income Statement
Statement of Changes in Owner's Equity
Statement of Cash Flows
Balance Sheet
Notes to Finan Statement
266
It shows the performance of the entity for a period of time.
Income Statement
267
It shows the revenues and expenses of the entity.
Income Statement
268
Components of Income Statement (2)
Revenue
Expenses
269
Income Statement are also called: (2)
Profit or Loss Statement or Statement of Profit or Loss
270
Income is composed of: (2)
Revenues
Gains
271
Expenses is composed of: (2)
Ordinary Expenses
Losses
272
It shows the financial condition of the entity.
Balance Sheet
273
Components of Income Statement (2)
Assets
Liability
Equity/Capital
274
For every business transaction, it has an equal and opposite effects in at least two different accounts.
Double-Entry System
275
Has two equal and corresponding sides known as debit and credit.
Double-Entry System
276
Accounting Equation
A=L+OE
277
Considered the basic device in summarizing financial information.
Accounts
278
It is used to keep track and have a detailed record of the increase, decrease and balance of each element that appears in the financial statements.
Accounts
279
Normal Balance of the Elements of F/S
A=Debit
L=Credit
OE=Credit
R=Credit
E=Debit
280
Accounting Cycle (10)
Step 1: Analyze the business transactions
Step 2: Journalize the business transactions to journal
Step 3: Post Journal Entries to Ledger
Step 4: Prepare the Trial Balance
Step 5: Journalize & Post Adjustments
Step 6: Prepare Adjusted Trial Balance
Step 7: Prepare Financial Statements
Step 8: Journalize & Post-Closing Entries
Step 9: Prepare Post-Closing Trial Balance
Step 10: Journalize & Post-Reversing Entries
281
Are proof of occurrence of business transactions containing information about the nature and the amounts of the transaction.
Source documents
282
Types of Transactions (4)
1. Source of Assets (SA)
2. Exchange of Assets (EA)
3. Use of Assets (UA)
4. Exchange of Claims (EC)
283
An assets account increases and a corresponding claims (liabilities or equity) account increase.
Source of Assets
284
One asset account increases and another asset account decreases.
Exchange of Assets
285
An asset account decreases and a corresponding claims (liability or equity) account decreases.
Use of Assets
286
One claim (liabilities or owner’s equity) account increases and another claims (liabilities or owner’s equity) account decreases.
Exchange of Claims
287
Is a chronological record of all the financial transactions of a business. It’s also known as the book of original entry.
Accounting journal
288
Accounting journal is also known as the ___ ___ ___ ___.
Book of Original Entry
289
Contents of Accounting journal (5)
Date of transaction
Account titles and explanation
Posting Reference (P.R.)
Debit
Credit
290
Posting reference is also known as ___ ___.
account code
291
A record or document that contains account summaries for accounts used by an entity.
Ledger
292
Ledger is called the ___ ___ ___ ___.
Book of Final Entry
293
A listing of all the accounts and their account numbers.
Chart of Accounts
294
It proves the equality of debits and credits.
Trial Balance
295
An entry to record unrecognized income or expense for the period.
Adjusting Entry
296
It is necessary because transactions take place over more than one accounting period.
Adjusting Entry
297
Suggests that revenue or expense is to be recorded when they occur regardless of when cash is received or paid.
Accrual Basis of Accounting
298
It recognizes revenue or expense when cash is received or paid, respectively.
Cash Basis of Accounting
299
___ is never involved in adjusting entries.
Cash is never involved in adjusting entries.
300
Adjusting entries always involve either a ___ account or an ___ account.
Adjusting entries always involve either a revenue account or an expense account.
301
Adjusting entries involve one ___ account and one ___ account.
Adjusting entries involve one real account and one nominal account.
302
___ accounts are account titles found in the balance sheet.
real accounts
303
___ accounts are found in the income statement.
nominal accounts
304
Deferral (5)
Prepayments
Purchase of Supplies
Depreciation
Uncollectible accounts estimate
Unearned Revenue
305
Accrual (2)
Accrued Expense
Accrued Revenue
306
It is the postponement of the recognition of expense already paid but not yet incurred or postponement of the recognition of revenue/income already collected but not yet earned.
Deferral type of adjustment
307
All assets acquired are subject to ___ (except “Land”) because of the passage of time, its use or the wear and tear of the assets.
depreciation
308
Using the ___ ___ ___ ___, the value of an asset is reduced uniformly over each period until it reaches its salvage value.
Straight Line Depreciation Method
309
Depreciation SLM formula
Annual Depreciation = Cost-SV
UL
310
The value of the asset at the end of its useful life.
Salvage Value
311
Represents the number of years in which the asset is expected to be used by the company.
Useful Life
312
A ___ ___ is a receivable that might become a bad debt at some point in the future.
doubtful debt
313
___ ___ ___ ___ is a contra asset account which represents management’s estimate of uncollectible accounts for the period.
Allowance for doubtful accounts
314
It is money received by the company for a service or product that has yet to be provided or delivered.
Unearned Income/Revenue
315
It is recorded as a liability because it represents a debt owed to the customer.
Unearned Income/Revenue
316
When the company earned or partially earned the revenue, ___ must be made to reflect the earned portion.
adjustments
317
Types of adjustment (2)
Deferral
Accrual
318
It is the recognition of expense already incurred but not yet paid or recognition of revenue/income already earned but not yet collected.
accrual type of adjustment
319
It is an expense already incurred but no payment has been made yet.
Accrued Expense
320
It is sometimes called accrued liability and is classified as a current liability.
Accrued Expense
321
It is a revenue/income that has been earned, but no cash has been received by the company.
Accrued Income/Revenue
322
It means services have been provided or goods have been delivered but no cash has been received as at the end of the accounting period.
Accrued Income/Revenue
323
Multiple column sheets wherein all necessary information used for the preparation of the financial statement is recorded in a systematic process is called a worksheet.
Worksheet
324
The worksheet is not a ___ account.
permanent
325
Worksheet is not a part of a ___ or ___. It is a device used for ___ ___ of adjusting entries and financial statements.
Worksheet is not a part of a journal or ledger. It is a device used for easy preparation of adjusting entries and financial statements.
326
It proves the equality of debits and credits; only the assets, liabilities and capital accounts are included.
Adjusted Trial Balance
327
It is a journal entry that is made at the end of the accounting period to transfer balances from a temporary account to a permanent account.
closing entry
328
All Income statement accounts are ___ or ___ accounts.
All Income statement accounts are nominal or temporary accounts.
329
___ account is also closed at the end of the year to the capital account.
Withdrawal
330
After the journalizing and posting the nominal accounts, it is time to prepare the ___-___ ___ ___.
Post-closing Trial Balance
331
It is similar with the preparation of the Trial Balance; the only difference is that only the real accounts will be presented.
Post-closing Trial Balance
332
It is a journal entry that is made at the beginning of the accounting period which reverses selected adjusting journal entries made in the immediately preceding period.
reversing entry
333
It is done at the beginning of the accounting period.
reversing entry
334
These are to be reversed: (3)
Accrued Expense
Accrued Income
Deferrals using Expense and Income methods
335
Involves a comprehensive examination of a company’s financial statements to provide users information to make economic decisions.
Financial Statements Analysis
336
Provide insight into different aspects of a company's financial health.
Liquidity and profitability ratios
337
It focuses on a company's ability to meet its short-term obligations
liquidity ratios
338
It evaluates a company's ability to generate returns over the long run
profitability ratios
339
It determines whether an entity can be able to pay for current liabilities as they become due with the use of current assets.
liquidity ratios
340
liquidity ratios (3)
Current ratio
Acid test ratio
Cash ratio
341
It measures how well does an entity generate income that relates to their revenues, operating costs, assets and capital.
profitability ratios
342
profitability ratios (3)
Gross profit ratio
Return on Assets
Return on Equity
343
Currently only ___ CPD units are being required when renewing PRC ID for CPAs.
15
344
This encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof.
Government Accounting
345
This is a specific branch of accounting involving a process of recording, summarizing, and reporting the myriads of transactions resulting from business operations over a period of time.
Financial Accounting
346
This examines the cost structure of a business. It does so by collecting information about the costs incurred by a company's activities, assigning selected costs to products and services and other cost objects, and evaluating the efficiency of cost usage.
Cost Accounting
347
This is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.
Management Accounting
348
This refers to the management and allocation of revenue an organization acquires through donations, tax payments, grants and other public and private sources.
Fund Accounting
349
This structure of accounting methods focused on taxes rather than the appearance of public financial statements.
Tax Accounting
350
___ ___ is governed by the Internal Revenue Code, which dictates the specific rules that companies and individuals must follow when preparing their tax returns.
Tax accounting
351
This utilizes accounting, auditing, and investigative skills to conduct an examination into the finances of an individual or business.
Forensic Accounting
352
This provides an accounting analysis suitable to be used in legal proceedings.
Forensic Accounting
